report & account (un-audited) for the nine months ended...

REPORT & ACCOUNT(Un-audited) For the nine months ended

MARCH 31, 2018

EMCO INDUSTRIES LIMITED

Board of Directors

Mr. Javaid Shafiq Siddiqi (Chairman)Mr. Tariq Rehman (Chief Executive)Mr. Suhail MannanMr. Pervaiz Shafiq SiddiqiMr. Usman HaqMr. Salem RehmanMr. Ahsan Suhail MannanMr. Awais NooraniCh. Imran Ali (Independent Director)

Chief Financial Officer

Mr. Riaz Ahmad

Company Secretary

Mr. Ahsan Suhail Mannan

Audit Committee

Ch. Imran Ali (Chairman)Mr. Javaid Shafiq Siddiqi (Member)Mr. Usman Haq (Member)Mr. Salem Rehman (Member)Mr. Ahsan Suhail Mannan (Member)

HR Committee

Mr. Pervaiz Shafiq Siddiqi (Chairman)Mr. Usman Haq (Member)Mr. Salem Rehman (Member)Mr. Ahsan Suhail Mannan (Member)

Auditors

M/s. Horwath Hussain Chaudhury & Co.,Chartered Accountants, Lahore.

Bankers

Habib Bank LimitedNational Bank of PakistanStandard Chartered Bank (Pakistan) LimitedFaysal Bank LimitedBank of PunjabMCB Bank Limited

BUSINESS ITEMS

Porcelain Insulators

• Suspension Insulator• Pin Insulator• Line Post Insulator• Cap and pin Insulator• Station Post Insulator• Indoor Switch and Bus Insulator• Apparatus Insulator• Insulator for Railway Electrification• Telephone Insulator• Low Voltage Insulator• Dropout Cutout Insulator• Bushings

Switchgear

• Disconnect Switch upto 145 kv• Metal Oxide Surge Arresters upto 430 kv

Chemical Porcelain

• Acid Proof Wares and Bricks• Rasching Ring and Saddles• Acid Proof Porcelain Pipes and Fitting• Acid Proof Cement

Special Porcelain

• High Alumina Porcelain• Lining Special Refractories

& Grinding Media

Share Registrar

Corplink (Pvt) LimitedWings Arcade. I-K , Commercial,Model Town, Lahore.

Registered Office

4th Floor, National Tower,28-Egerton Road,Lahore.

Factory

19-Kilometre,Lahore Sheikhupura Road,Lahore.

COMPANY INFORMATION

2 |

NINE MONTHS ENDED REPORT 2018| 3

DIRECTORS’ REVIEW

Dear Shareholders

On behalf of the Board of Directors, I present Un-audited condensed Interim financialinformation of your Company for the Third quarter ended March 31, 2018.

Sale for the period under review was driven entirely by the Insulator Division and recordedat Rs. 851.4 M (Rs. 781.8 M for March 2017). Your company has earned a gross profit of Rs.129.7 in this period (Rs.172.9 M for March 2017). Profit from operations for the period isRs.60.5 M (Rs. 89.9 M for March 2017). These figures include booking full depreciation ofRs.25.3 M of the discontinued assets of Tile Division for the period under review.

There was some pressure on the gross profit in this period as your company invested a portionof proceeds towards improving building infrastructure and type test certification frominternationally accredited laboratories for both local and export markets. These activities willcontinue over the next few months.

The company has commenced sale proceedings of the Tile Division machinery and equipmentand has finalized a buyer for the equipment. The finalized sale price is well above the originalreserve price of the Tile Plant machinery approved in the AGM in September 2017. The finalNOC is awaited from one of the financial institutions, which is expected in the near future.

Based on the finalized sale price of the tile plant machinery, and acting in prudence, theCompany has taken an impairment on the tile plant machinery. Despite the net impairmentof Rs. 24.2 M, your company has still realized a profit after tax of Rs. 29.1 M as compared tonet profit after tax of Rs. 35.0 M in the same period last year.

Going forward, the company is actively working on shedding its non-productive assets tostreamline its core Insulator Plant operations. The sale of unutilized land at the rear of theexisting plant is being aggressively pursued and very attractive offers have been received.This sale will generate additional cash flow to be injected into operations for BMR, and willalso be used to reduce debt burden of the company.

The order book for your company continues to exhibit a healthy trend in light of newtransmission projects, and the strong demand for insulators.

By the grace of Allah and continuous efforts of Management, Company results are showinggrowth. Operational profit from the Insulator plant is on an upward trajectory and will Insha-Allah continue to improve in the near future owing to an aggressive improvement in processesthrough better controls.

The key highlights of the nine months under review are as under:

Insulator Plant Operation

Demand for the company's Insulators remained strong during the current period, which hasresulted in a profit from operation of Rs.60.5 M in the period as compared to Rs. 89.9 M forthe corresponding period last year.

The monthly production remained relatively stable against the corresponding period. However,sales for the period increased to Rs. 851.4 M from Rs.781.9 M, which has resulted in reductionof inventory levels.

Major investment in the energy infrastructure in Pakistan is generating significant demandfor Insulators within the country. We foresee that with the current orders in hand and futuredemand the company will see a significant improvement in the results of the company in thenear future.

Tile Plant Operation

As approved by the General Body, the Company had decided to dispose of the Tile Plantmachinery and a part of unutilized land within the factory premises. These transactions willbe executed in the near future after receiving of the final NOC from one of our financialstakeholders. The process is well underway.

The Directors are thankful to our valued customers, dealers, financial institutions and otherstakeholders for their continued trust. The hard work of all employees is recognized andappreciated.

On behalf of board

April 26, 2018 Tariq RehmanLahore Managing Director

4 |

6 |

LahoreApril 26, 2018

CONDENSED INTERIM BALANCE SHEET

CAPITAL AND LIABILITIES

Share Capital and Reserves

Authorized share capital:40,000,000 (June 30, 2017: 40,000,000) Ordinary shares of Rs. 10 each 400,000,000 400,000,000

Issued, subscribed and paid up capital:35,000,000 (June 30, 2017: 35,000,000) Ordinary shares of Rs. 10 each 350,000,000 350,000,000Reserves (349,412,116) (393,616,820)Sponsors' loan 115,708,828 115,708,828

116,296,712 72,092,008

Surplus on Revaluation of Property, Plant and Equipment 5 895,772,902 920,533,260

Non Current Liabilities

Long term financing 6 266,998,357 331,989,413Diminishing musharika 3,004,408 -Deferred liabilities 41,089,474 37,850,488Deferred taxation 62,823,619 101,628,934

373,915,858 471,468,835

Current Liabilities

Trade and other payables 340,622,993 316,405,998Accrued finance cost 139,882,257 132,358,712Short term borrowings 596,128,320 492,719,846Current portion of non-current liabilities 63,542,149 87,867,785

1,140,175,719 1,029,352,341

Contingencies and Commitments 7 - -

Total Equity and Liabilities 2,526,161,192 2,493,446,444

The annexed notes form an integral part of this condensed interim financial information (un-audited).

June 30,2017

(Audited)Rupees

March 31,2018

(Un-audited)Rupees

Note

(Tariq Rehman)Chief Executive

CONDENSED INTERIM BALANCE SHEET


AS AT MARCH 31, 2018

ASSETS

Non Current Assets

Property, plant and equipment 4 1,420,555,950 1,468,332,961Intangible assets 2,319,218 2,519,906Long term loans 1,337,123 1,499,861Long term deposits 271,163 271,163

1,424,483,454 1,472,623,891

Current Assets

Stores, spares and loose tools 110,952,774 110,990,667Stock-in-trade 424,110,826 426,127,467Trade debts 398,043,673 336,184,239Advances, deposits, prepayments and other receivables 97,142,822 83,759,175Income tax refundable from the Government 69,416,143 61,201,919Cash and bank balances 2,011,500 2,559,086

1,101,677,738 1,020,822,553

Total Assets 2,526,161,192 2,493,446,444

June 30,2017

(Audited)Rupees

March 31,2018

(Un-audited)Rupees

Note

(Riaz Ahmad)Chief Financial Officer

(Ahsan Suhail Mannan)Director

8 |

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT(UN-AUDITED)FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2018

2017Rupees

2018RupeesNote

Quarter Ended March 31,2017

Rupees2018

Rupees

Nine Months Ended March 31,

Sales - net 851,440,652 781,860,491 343,698,795 299,724,356Cost of sales 8 (721,721,754) (608,960,284) (293,230,919) (235,026,629)

Gross Profit 129,718,898 172,900,207 50,467,876 64,697,727

- Selling and distribution expenses (25,510,518) (45,729,799) (9,591,763) (19,651,677)- Administrative expenses (43,737,545) (37,213,604) (14,229,206) (11,509,605)

(69,248,063) (82,943,403) (23,820,969) (31,161,282)

Operating Profit 60,470,835 89,956,804 26,646,907 33,536,444

Other operating expenses 9 (27,729,873) (27,288,357) (2,951,332) (25,857,958)Finance cost (44,576,044) (44,845,425) (14,168,407) (14,065,655)Other income 2,957,242 27,169,732 1,671,933 24,202,346

Profit / (Loss) before Taxation (8,877,839) 44,992,754 11,199,102 17,815,178

Taxation 10 37,987,641 (9,940,167) (4,297,271) (3,702,690)

Net Profit for the Period 29,109,802 35,052,587 6,901,831 14,112,488

Earnings per Share - Basic and Diluted (Rupees) 0.83 1.00 0.20 0.40







CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2018

2017Rupees

2018Rupees

Quarter Ended March 31,2017

Rupees2018

Rupees


Net Profit for the Period 29,109,802 35,052,587 6,901,831 14,112,488

Other comprehensive income

Items that will not be re-classified subsequently to the profit or loss - - - -

Items that will be reclassified subsequently to the profit or loss - - - -

Total Comprehensive Profit for the Period 29,109,802 35,052,587 6,901,831 14,112,488






10 |

CONDENSED INTERIM CASH FLOW STATEMENT(UN-AUDITED)

CASH FLOW FROM OPERATING ACTIVITIESProfit / (loss) before taxation (8,877,839) 44,992,754- Depreciation on property, plant and equipment - owned 59,459,241 65,011,577- Amortization of intangible assets 200,690 535,080- Impairment Loss 24,176,419 -- Provision for gratuity 3,377,794 2,218,806- Bad debts - 6,985,402- Provision for doubful debts 4,071,094 18,080,774- Loss / Gain on disposal of property, plant and equipment 436,321 (183,970)- Reversal of markup on restructuring of NBP Loan - (25,099,572)- Liabilities written back (733,012) (1,468,017)- Exchange (gain)/ loss (1,393,517) (603,264)- Amortization of deferred markup 2,599,118 -- Finance cost 44,576,044 44,845,425

136,770,191 110,322,241Operating profit before working capital changes 127,892,352 155,314,995(Increase) / decrease in current assets:- Stores, spares and loose tools 37,893 (2,985,726)- Stock in trade 1,757,674 2,427,791- Trade debts (56,010,524) (131,266,344)- Advances, deposits, prepayments and other receivables (37,513,051) (25,616,775)(Decrease) / increase in current liabilities:- Trade and other payables 40,814,502 9,801,224

(50,913,506) (147,639,830)Cash (used in) / generated from operations 76,978,845 7,675,165Finance cost paid (34,391,767) (28,083,255)Payment to gratuity fund (138,802) (3,013,843)Income tax (paid) / refunded - net (5,318,180) 576,957Net Cash (used in) / generated from Operating Activities 37,130,096 (22,844,976)CASH FLOW FROM INVESTING ACTIVITIESProperty, plant and equipment purchased (45,797,490) (25,662,290)Long term loans and other receivables 162,738 285,855Proceeds from disposal of property, plant and equipment 412,820 495,703Net Cash used in Investing Activities (45,221,932) (24,880,732)CASH FLOW FROM FINANCING ACTIVITIESLong term financing from related parties acquired / (repaid) - net (62,222,483) 32,650,405Long term financing from banking companies repaid - net (33,242,760) (21,791,659)Diminishing Musharka acquired / (repaid) - net (396,382) -Short term borrowing from related parties acquired - net 78,517,642 63,129,510Short term borrowing from banking companies acquired - net 24,888,233 (27,347,777)Net Cash generated from / (used in) Financing Activities 7,544,250 46,640,479Net Increase / (Decrease) in Cash and Cash Equivalents (547,586) (1,085,229)Cash and cash equivalents at the beginning of the period 2,559,086 8,856,068Cash and Cash Equivalents at the End of the Period 2,011,500 7,770,839


2017Rupees

2018Rupees

NoteNine Months Ended March 31,

FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2018





Balance as at June 30, 2016 350,000,000 39,898,526 90,000,000 115,708,828 (574,299,548) 21,307,806

Total comprehensive profit for nine months period ended March 31, 2017 - - - - 35,052,587 35,052,587

Incremental depreciation for the period on surplus on revaluation of property, plant and equipment net of deferred tax - - - - 12,648,879 12,648,879

Balance as at March 31, 2017 350,000,000 39,898,526 90,000,000 115,708,828 (526,598,082) 69,009,272

Balance as at June 30, 2017 350,000,000 39,898,526 90,000,000 115,708,828 (523,515,346) 72,092,008

Total comprehensive profit for nine months period ended March 31, 2018 - - - - 29,109,802 29,109,802

Incremental depreciation for the period on surplus on revaluation of property, plant and equipment net of deferred tax - - - - 15,094,903 15,094,903

Balance as at March 31, 2018 350,000,000 39,898,526 90,000,000 115,708,828 (479,310,642) 116,296,712



CONDENSED INTERIM STATEMENT OFCHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2018

TotalRupees

Sponsors'Loan

Rupees

GeneralReservesRupees

SharePremiumRupees

ShareCapitalRupees

AccumulatedLoss

Rupees

Reserves





1. The Company and its Operations

1.1 EMCO Industries Limited ("the Company") is incorporated in Pakistan and is listed on PakistanStock Exchange Limited. The Company was incorporated as a Joint Stock Company in Pakistanunder the Companies Act, 1913, (now the Companies Ordinance, 1984) as a private limitedcompany on August 17, 1954 by the name of Electric Equipment Manufacturing Company(Private) Limited. Later, it was converted into a public company on August 20, 1983 and itsname was changed to EMCO Industries Limited on September 12, 1983. The Company waslisted on stock exchanges on December 29, 1983. Its registered office is situated at 4th Floor,National Tower, 28 Egerton Road, Lahore.

1.2 The Company is principally engaged in the manufacture and sale of high / low tension electricalporcelain insulators and switchgears.

2. Basis of Preparation

2.1 These condensed interim financial statements have been prepared in accordance with theaccounting and reporting standards as applicable in Pakistan for interim financial reporting.The accounting and reporting standards as applicable in Pakistan for interim financial reportingcomprise of:

* International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by theInternational Accounting Standards Board (IASB) as notified under the Companies Act, 2017;and

* Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with therequirements of IAS 34, the provisions of and directives issued under the Companies Act,2017 have been followed.

2.2 This condensed interim financial information should be read in conjunction with annualaudited financial statements for the year ended June 30, 2017. Comparative balance sheetis extracted from annual audited financial statements for the year ended June 30, 2017whereas comparative profit and loss account, comparative statement of comprehensiveincome, comparative cash flows statement and comparative statement of changes in equityare extracted from unaudited interim financial information for the period ended March 31,2017.

2.3 The preparation of these condensed interim financial information requires management tomake judgments, estimates and assumptions that affect the application of accounting policiesand the reported amounts of assets, liabilities, income and expense. Actual results may differfrom these estimates. In preparing this condensed interim financial information, the significantjudgments made by the management in applying accounting policies and key sources ofestimation were the same as those that were applied to the financial statements for the yearended June 30, 2017.

2.4 This condensed interim financial information is presented in Pak Rupees, which is the Company'sfunctional and presentational currency. All the figures have been rounded off to the nearestrupees, unless otherwise stated.

12 |

SELECTED NOTES TO CONDENSED INTERIMFINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2018


June 30,2017

(Audited)Rupees

March 31,2018

(Un-audited)RupeesNote

4. Property, Plant and Equipment

Operating fixed assets 4.1 1,403,880,452 1,437,943,775Capital work in progress - civil works 11,673,192 30,389,186Leased asset 5,002,306 -

1,420,555,950 1,468,332,961

4.1 Operating fixed assets

Opening written down value 1,437,943,775 1,315,164,858Additions during the period / year 63,800,724 25,367,080Revaluation surplus arised during the period / year - 180,866,462Disposals during the period / year (849,141) (1,081,121)Impairment Loss (37,555,665) -

1,463,339,693 1,520,317,279Depreciation charge for the period / year (59,459,241) (82,373,504)

1,403,880,452 1,437,943,775

5. Surplus on Revaluation of Property, Plant andEquipment

Land - Freehold 479,521,964 237,839,464Buildings on freehold land 252,550,999 192,718,295Plant and machinery 193,034,313 315,845,138

925,107,276 746,402,897

Revaluation surplus arisen during the period / year - 180,866,462925,107,276 927,269,359

Less: Deferred tax impact related to surplus arisen during the period / year - 17,691,385Less: Reversal of revaluation surplus due to impairment of plant and equipment (13,379,246) -Add: Related tax impact 3,912,092 -Effect of change in effective tax rates (860,220) (2,256,579)

Incremental depreciation charged on revalued property, plant and equipment in current year net of deferred tax transferred to retained earnings (15,094,908) (22,170,905)

895,772,902 920,533,260

3. Significant Accounting Policies

The Company's accounting and financial risk management policies and methods of computationof this condensed interim financial information are the same as those followed in thepreparation of annual financial statements for the preceding financial year ended June 30,2017.

14 |

June 30,2017

(Audited)Rupees

March 31,2018

(Un-audited)RupeesNote

6. Long Term Financing

Banking companies - securedNIB Bank Limited - 3,917,401

National Bank of Pakistan 118,361,639 130,646,761Adjustment due to impact of IAS 39 (3,220,231) (4,537,590)

115,141,408 126,109,171

Standard Chartered Bank (Pakistan) Limited 77,413,918 120,669,487Adjustment due to impact of IAS 39 (14,056,000) (15,234,095)

63,357,919 105,435,392

178,499,326 235,461,964

Associated companies / related parties - unsecuredAssociated Engineers (Private) Limited 20,798,859 19,698,859EMCO Industries Limited Provident Fund 111,736,368 132,954,131ICC (Private) Limited 16,041,671 29,166,668Imperial Electric Company (Private) Limited 2,575,576 2,575,576

151,152,474 184,395,234

329,651,800 419,857,198

Less: current portion:- Banking companies (35,599,404) (45,340,654)- Associated companies / related parties (27,054,039) (42,527,131)

(62,653,443) (87,867,785)

266,998,357 331,989,413

7. Contingencies and Commitments

Contingencies

There has been no material change in contingencies since last audited annual financialstaements.

2017(Audited)

Rs. in millions

2018(Un-audited)

Rs. in millionsNote

CommitmentsLetters of credit other than for capital expenditure 34.444 60.771

GuaranteesWAPDA 122.243 101.787Sui Northern Gas Pipelines Limited 22.406 22.406Collectorate of Customs 8.978 8.978

153.627 133.171


2017Rupees

2018Rupees

2017Rupees

2018Rupees

Nine Months Ended

8. Cost of sales

Raw and packing material consumed 262,206,382 259,759,323 90,846,565 93,919,227Stores and spares consumed 30,865,609 24,879,041 11,170,813 9,874,110Salaries, wages and benefits 177,036,160 168,923,319 58,346,772 55,897,688Power and gas 106,383,242 81,573,502 47,499,462 27,317,262Vehicle maintenance 490,400 446,046 177,460 122,427Repairs and maintenance 1,591,420 2,713,009 329,865 345,637Insurance 2,937,968 2,475,157 869,296 803,621Communication and stationery 720,750 724,783 259,635 195,414Rent, rates and taxes 976,186 1,054,757 432,353 185,191Travelling and conveyance 11,384,861 5,063,442 1,360,213 2,538,921Testing and experiment charges 15,110,645 17,243,221 6,044,229 9,521,933Miscellaneous 1,707,548 1,258,787 536,829 485,232Depreciation on property, plant and equipment 59,167,452 64,489,366 59,167,452 23,863,149

670,578,620 630,603,753 277,040,941 225,069,812

Work in process:- Opening work in process 29,735,130 21,295,773 36,708,846 25,685,997- Closing work in process (40,503,653) (27,434,895) (40,503,653) (27,434,895)

(10,768,523) (6,139,122) (3,794,807) (1,748,898)

Cost of goods manufactured 659,810,097 624,464,631 273,246,134 223,320,914

Finished goods:- Opening finished goods 258,274,157 186,953,949 255,603,360 214,164,011- Closing finished goods (196,362,500) (202,458,296) (196,362,500) (202,458,296)

61,911,657 (15,504,347) 59,240,860 11,705,715

721,721,754 608,960,284 332,486,994 235,026,629

9. Other operating expenses

Other operating expenses include the related impact amounting to Rs. 24,176,419 on accountof impairement loss of plant and machinery of the tiles division (March 31, 2017: Nil).

March 31, March 31,

Un-audited Un-auditedQuarter ended

June 30,2017

(Audited) Rupees

March, 312018

(Un-audited)Rupees

Outstanding balances as at

Accrued mark-up on long term financing 127,710,334 119,367,887Accrued mark-up on short term borrowing 8,579,346 16,253,347Long term financing 266,861,301 300,103,721Short term borrowings 357,314,071 283,150,079Payable for expenses 7,877,445 5,237,418Receivable against sales 368,925 368,925

16 |

2017(Un-audited)

Rupees

2018(Un-audited)

Rupees

10. Taxation

Current 10,488,382 7,823,087Prior year adjustment:- Current tax 13,587,331 -- Tax credits (26,971,759) -

(2,896,046) 7,823,087Deferred (35,091,595) 2,117,080

(37,987,641) 9,940,167

11. Transactions with Related Parties

Related parties and associated companies comprise related group companies, associatedcompanies, staff retirement funds, directors and key management personnel. Transactionsalong with balances with related parties and associated companies, other than remunerationand benefits to key management personnel under the terms of their employment, are asfollows:


2017(Un-audited)

Rupees

2018(Un-audited)

Rupees

Associates and related partiesMark-up on long term financing 2,165,232 531,727Mark-up on short term borrowing 10,247,584 9,538,197Long term financing obtained 1,100,000 1,600,000Long term financing repaid 13,124,997 -Short term borrowing obtained 432,617,095 475,797,561Short term borrowing repaid 354,095,172 412,655,255Conversion of interest free loan to interest bearing - 23,948,000Conversion of interest bearing loan to interest free 23,948,000 -Mark-up on short term borrowing paid 7,877,445 8,238,288Rent paid 1,889,509 990,000Managerial services and expenses charged - net 17,953,362 13,640,081

Staff retirement fundMarkup on loan from Employees' Provident Fund Trust 8,076,164 7,410,515Principal repaid 21,217,763 2,491,262Mark-up paid 265,444 250,000Expense charged to Gratuity Fund 3,377,794 2,218,806



12. Segment Reporting

12.1 A business segment is a group of assets and operations engaged in providing products thatare subject to risks and returns that are different from those of other business segments. Themanagement has determined the operating segments based on the information that ispresented to the Chief Executive Officer for allocation of resources and assessments ofperformance. Based on internal management reporting structure and products produced andsold, the Company is organized into following two operating segments:

Types of segments Nature of business- Insulator Manufacture and sale of high/low tension electrical porcelain

insulators and switchgear

- Tile Manufacture and sale of ceramic tiles and the segment is subjectto disposal decision by the management

The management monitors the operating results of its business units separately for the purposeof making decision about resource allocation and performance assessment. Segmentperformance is generally evaluated based on certain key performance indicators includingbusiness volume, gross profit, profit from operations, reduction in operating cost and freecash flows.

The Company has closed down the production facility of tile segment, therefore, segmentresults for the period only include insulator segment and the segment is subject to disposaldecision by the management.

Segment assets include all operating assets used by a segment and consist principally ofreceivables, inventories and property, plant and equipment, net of impairment and provisionsbut do not include deferred taxes. Segment liabilities include all operating liabilities andconsist principally of trade payable, bills payable and short term borrowing.

12.2 Segment analysis

The segment information for the reportable segments for the nine months ended March 31,2018 is as follows:

Segment Results for the nine months ended March 31, 2018

Revenue 851,440,652 - 851,440,652

Segment result from operations 111,099,548 (50,628,713) 60,470,835

Other operating expenses (27,729,873)Finance costs (44,576,044)Other income 2,957,242

Profit before taxation (8,877,839)

Insulator Tiles Total

18 |

June 30,2017

(Audited)Rupees

March 31,2018

(Un-audited)Rupees

Reportable segments' assets are reconciled tototal assets as follows:

Segment assets for reportable segments 2,348,812,335 2,389,131,958Corporate assets unallocated 175,337,357 101,755,400Cash and bank balances 2,011,500 2,559,086

Total assets as per the balance sheet 2,526,161,192 2,493,446,444

Reportable segments' liabilities are reconciled to total liabilities as follows:Corporate liabilities unallocated 1,514,091,578 1,500,821,176

13. Date of Authorization for Issue

This condensed interim financial information (un-audited) is authorized for issuance on 26April 2018 by the Board of Directors of the Company.





Segment Results for the nine months ended March 31, 2017

Revenue 781,860,491 - 781,860,491

Segment result from operations 122,315,140 (32,358,336) 89,956,804

Other operating expenses (27,288,357)Finance costs (44,845,425)Other income 27,169,732

Profit before taxation 44,992,754

Segment asset as at March 31, 2018 1,834,485,643 514,326,692 2,348,812,335

Segment asset as at June 30, 2017 1,771,017,355 618,114,603 2,389,131,958

Insulator Tiles Total

EMCO INDUSTRIES LIMITEDOffice: 4th Floor, National Tower, 28-Egerton Road, Lahore -54000

Phone: (+92) (42) 3630 6545 - 6 Fax: (+92) (42) 3636 8119Email: [email protected]

Factory: 19-Kilometre, Lahore Sheikhupura Road, Lahore.

report & account (un-audited) for the nine months ended...

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